Mortgage Interest Rate Weekly Update May 23 2016

Mortgage Interest Rate weekly update for the Week of May 23, 2016 by John R. Thomas with Primary Residential Mortgage, Inc. in Newark, Delaware. John Thomas is the Branch Manager, a Loan Officer and the author of the best selling book, Your Guide to Buying Your First Home in Delaware.  Call 302-703-0727 for a Rate Quote or Apply Online for Rate Quote

Mortgage Interest Rates moved higher last week as mortgage bonds sold off as Federal Reserve announced that are looking to hike the Feds Funds Rate in June 2016.  If you look at the mortgage bond chart below you can see the sell off in bonds last week.  Bonds were able to find support at the 100 day moving average and may be ready to make a move higher which would move interest rates lower.  Therefore we are recommending FLOATING Your mortgage rate to start the week.

In Economic News, Manufacturing reports from Philadelphia and New York both show that the manufacturing sector is just muddling along which is not a positive sign.

Consumer Inflation Rose in April 2016 in the Consumer Price Index (CPI) which rose 0.4% from an increase in gas and food prices.  A rise in inflation can be bad for mortgage rates so we need to see if this rise in inflation becomes a trend.

Thursday Weekly Initial Jobless Claims were released and dropped 16,000 claims to 278,000 claims for the week.  Initial claims have remained below 300,000 for 63 straight weeks which is the longest streak since 1973.

In Housing News, Housing Starts for April 2016 jumped 6.6% from March 2016 to 1.172 Million Starts on an annualized basis.  In contrast year over year housing starts were down 1.7 percent from April 2015.   Housing Starts is a measure of new homes that home builders have started construction on in that month.

Building Permits for April 2016 were up 3.6% to 1.116 million units on annualized basis.  This shows housing is strong for new home builders.

First Time Home Buyer Seminars Coming Up:

The next Delaware First Time Home Buyer Seminar is Saturday June 18, 2016 in Newark, Delaware.

The next Dover Delaware Home Buyer Seminar is Saturday June 4, 2016 in Dover, Delaware

Register by calling 302-703-0727 or Register online at http://www.DelawareHomeBuyerSeminar.com